Weird Parameter Encoding issue in Production Rails 3.1.0

All,

I'm having a weird issue with posted parameters in Rails 3.1.0.

This is only happening in production and not in development.

I have confirmed that when making a post, parameters are passed to the
server as:

utf8=%E2%9C
%93&authenticity_token=jOn16Uw3oUBPQfX02nt1IN8muZf150nTt24Ic4JgPvY
%3D&alert%5Btitle%5D=http%3A%2F%2Fwww&alert%5Bheadline%5D=%26headline

Which looks like the following when decoded:

utf8=✓&authenticity_token=jOn16Uw3oUBPQfX02nt1IN8muZf150nTt24Ic4JgPvY=&alert[title]=http://
www&alert[headline]=&headline

However, on the server side, the parameters are received as:

{"utf8"=>"✓",
"authenticity_token"=>"jOn16Uw3oUBPQfX02nt1IN8muZf150nTt24Ic4JgPvY=",
"alert"=>{"status"=>"published",
          "title"=>"http://www",
"headline"=>"&headline"}
Obviously, I do not wish to store the encoded values.

I'm using Rails 3.1.0, unicorn, and Nginx. I have also tried this on a
Rails 3.1.0, passenger, apache stack and had the same issue. In both
cases, I'm using 1.9.2p290.

I'd appreciate any advice. Is there a new production setting that I'm
not aware of?

I've posted the same issue on stackoverflow here:
http://stackoverflow.com/questions/7476404/parameter-encoding-problem-with-rails